Ballantyne Strong Secures $20 Million Revolving Credit Facility with Wells Fargo

July 8, 2010

Source: Ballantyne

Ballantyne Strong announced that it has entered into a $20 million, one-year Revolving Credit Agreement and Note (collectively, the “Credit Facility”) with Wells Fargo Bank, N.A. Borrowings under the Credit Facility, which bear interest at a rate of LIBOR plus 125 basis points, will be primarily used for working capital and other general corporate purposes.

The Credit facility expires June 30, 2011 and is secured by Ballantyne’s accounts receivable, general intangibles and inventory. The Credit Facility contains certain covenants and restrictions pertaining to the operations of the Company.

Kevin Herrmann, CFO of Ballantyne, commented, “To supplement our already strong balance sheet and cash position, we felt it was prudent to expand Ballantyne’s potential borrowing capacity through this new relationship with Wells Fargo. The Credit Facility replaces our previous $4 million facility with another bank and provides us with an expanded cushion to fund potential short-term cash needs, particularly in our digital projector business, at an attractive cost. It also provides us with greater future flexibility in deploying our cash resources to fund other growth opportunities, including potential acquisitions.”


Submit a Company

Submit News

Submit a Job

Submit an Event